EEOC clears path for reduced retiree benefits

[one...two...tree 2,762]

Given the costs of healthcare in this country, I suppose this was inevitable.

The Equal Employment Opportunity Commission said Wednesday that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare.

The policy, set forth in a new regulation, allows employers to establish two classes of retirees, with more comprehensive benefits for those under 65 and more limited benefits — or none at all — for those older.

More than 10 million retirees rely on employer-sponsored health plans as a primary source of coverage or as a supplement to Medicare, and Naomi C. Earp, the commission’s chairwoman, said, “This rule will help employers continue to voluntarily provide and maintain these critically important health benefits.” […]

Because of the rising cost of health care and the increased life expectancy of workers, the commission said, many employers refuse to provide retiree health benefits or even to negotiate on the issue.

An EEOC lawyer noted that many employers and labor unions had told the panel that “if they had to provide identical benefits for retirees under 65 and over 65, they would just drop retiree health benefits altogether for both groups.”

Under the new rules, an employer can choose to provide retiree health benefits “only to those retirees who are not yet eligible for Medicare.” Likewise, the rule says, retiree health benefits can be “altered, reduced or eliminated” when a retiree becomes eligible for Medicare.

The proverbial writing is on the wall.

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That's just swell.

http://www.thecarpetbaggerreport.com/

[desert_fox 32]

That only makes sense. If you are covered by Medicare, you dont the total insurance package as Medicare (parts 1 and 2) pick up the cost of most office visits and hospitalization. Those costs that are not covered by Medicare can be easily covered by a low cost supplement or the li8mited benefits that are described. This is pretty standard.